ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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5. Efficiency in the production possibilities model
Suppose France produces only two goods: wheat and digital cameras. The following graph shows France's current production possibilities frontier (also
known as the production possibilities curve), along with six output combinations represented by black points (cross symbols) labeled A to F.
DIGITAL CAMERAS (Millions)
100
80
60
40
20
0
PPF
0
et
D
+
+
C
20
*
40
E
B
*
F
+
60
WHEAT (Millions of bushels)
*A
80
100
?
Complete the following table by indicating whether each point represents output combinations that are productive inefficient, productive efficient,
attainable, or unattainable. Check all that apply.
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Transcribed Image Text:5. Efficiency in the production possibilities model Suppose France produces only two goods: wheat and digital cameras. The following graph shows France's current production possibilities frontier (also known as the production possibilities curve), along with six output combinations represented by black points (cross symbols) labeled A to F. DIGITAL CAMERAS (Millions) 100 80 60 40 20 0 PPF 0 et D + + C 20 * 40 E B * F + 60 WHEAT (Millions of bushels) *A 80 100 ? Complete the following table by indicating whether each point represents output combinations that are productive inefficient, productive efficient, attainable, or unattainable. Check all that apply.
A
B
C
D
E
0
F
D
20
Complete the following table by indicating whether each point represents output combinations that are productive inefficient, productive efficient,
attainable, or unattainable. Check all that apply.
Point Productive Inefficient Productive Efficient Attainable Unattainable
40
F
60
WHEAT (Millions of bushels)
80
100
FR
0
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Transcribed Image Text:A B C D E 0 F D 20 Complete the following table by indicating whether each point represents output combinations that are productive inefficient, productive efficient, attainable, or unattainable. Check all that apply. Point Productive Inefficient Productive Efficient Attainable Unattainable 40 F 60 WHEAT (Millions of bushels) 80 100 FR 0
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